<article><p class="lead">India's federal power ministry has raised state-controlled utility NTPC's thermal coal import target by 25pc for the 2022-23 fiscal year that started on 1 April, as the country seeks to avert a power crisis with tighter domestic coal supplies.</p><p>The utility has been asked to import 20mn t of thermal coal for blending purposes in 2022-23, up from a <a href="https://direct.argusmedia.com/newsandanalysis/article/2294638">16mn t target set earlier</a>, the ministry informed NTPC through a letter reviewed by Argus. </p><p>The move comes as several parts of India are battling one of the most <a href="https://direct.argusmedia.com/newsandanalysis/article/2327586">severe heatwaves in a century</a>, which has exacerbated electricity consumption with the country's peak power demand hitting a historic high of 207GW on 29 April. India's power demand had already rebounded with a recovery in economic activity as Covid-19 restrictions were lifted, although domestic coal supplies to utilities have been unable to keep pace with the surge in nationwide coal consumption.</p><p>Coal-fired utilities have increased output in response to the higher power demand, with generation rising to 147GW in April from 135GW a year earlier, according to provisional data from the Central Electricity Authority (CEA). This led to an increase in stocks draw down by utilities, with aggregate inventories at Indian coal plants — including domestic and imported coal — falling to 21.25mn t on 7 May. This was just enough to support less than eight days of generation and was down from 25.6mn t on 31 March, according to CEA's daily report.</p><p>As much as 17.5mn t from NTPC's coal import target should be delivered between May-August, the ministry said, with the remainder to be received between September-October. The utility has already booked 6.7mn t of mid-calorific value (CV) imported coal, a senior NTPC official told Argus, adding that most of the contracted cargoes would arrive by the end of May. NTPC is currently seeking 6.25mn t of mid-CV imported thermal coal, the official added. The remaining volume will also be sought soon through tenders.</p><p>The federal power ministry has also raised the 2022-23 coal import target for smaller state-controlled generator Damodar Valley to 3mn t from about 2mn t.</p><h3>Increased availability </h3><p class="lead">The power ministry has reiterated calls for all the utilities to raise imports for blending purposes, directing states last week to speed up of purchases at seaborne coal at government-controlled power plants. It also asked the utilities to boost the use of road transportation, to reduce an over-reliance on railways as the key mode of transporting coal from mine to power plants.</p><p>The coal ministry has asked state-controlled Coal India to raise output and supplies to meet the rising demand from utilities.</p><p>India now aims to raise domestic output to 1.2bn t by 2023-24, junior coal and railways minister Raosaheb Patil Danve said on 6 May. This is up from the previous target of 1bn t by 2024. The country produced 777.31mn t in 2021-22.</p><p class="bylines">By Saurabh Chaturvedi</p></article>